Starbucks' incoming CEO could make well in excess of $100 million in his first year with the company under an incentive-laden contract, and he will not be required to relocate from his home in California to Seattle, the home of the global coffee giant.
Starbucks announced on Tuesday that Brian Niccol would become its chairman and CEO, taking over from Laxman Narasimhan, who stepped down abruptly after spending a little more than a year as the company's top executive. Niccol will become Starbucks’ chairman and CEO on Sept. 9.
Niccol is among the mostly highly sought after corporate executives after establishing a track record of success in turning around companies that have hit a rough patch, including Taco Bell and, most recently, Chipotle.
Niccol took the top job at the California chain in 2018 when Chipotle was being roiled by a series of foodborne illness outbreaks that had sickened more than 1,000 of its customers over several years.
Revenue at Chipotle has nearly doubled since his arrival after he energized product innovation and at the same time, instituted employee benefits like a program that pays employees’ college tuition costs at certain schools.
Starbucks is counting on Niccol to revive fading sales and re-establish the company as a destination where customers are willing to pay premium prices for its products.
In a filing with the Securities and Exchange Commission late Wednesday, Starbucks said that the 50-year-old Niccol will receive a cash bonus of $10 million as well as $75 million in equity to make up for what is being forfeited by his abrupt departure from Chipotle. The equity component of his pay package will vest over time and is contingent on meeting performance targets.
If Starbucks meets those targets and other goals, his pay could easily surpass $100 million in his first year.
Niccol's annual base salary will be $1.6 million. He'll also have an annual cash incentive opportunity at a target of 225% of his base salary and a maximum of 450% of base salary. If he achieves the maximum incentive, it would be about $8.8 million.
Starting in fiscal 2025, Niccol will be eligible to receive annual equity awards worth up to $23 million.
Perhaps just as notable, Starbucks is not requiring that Niccol relocate to Starbucks headquarters in Seattle, saying he can remain in Newport Beach, California, where he currently lives and where Chipotle is based.
According to a regulatory filing, Starbucks will help create, with assistance from Niccol, a small remote office in Newport Beach and the company will hire an assistant for Niccol at that location.
Niccol will commute to Seattle as needed, as well as embark on any other business travel that's deemed necessary.
Starbucks Chief Financial Officer Rachel Ruggeri is serving as the interim CEO until Niccol arrives in early September.
Shares of Starbucks were little changed Thursday. They surged 20% when Niccol's appointment was announced earlier this week.
FILE - A Starbucks mermaid logo sign is displayed on a store, May 29, 2024, in Salem, N.H. (AP Photo/Charles Krupa, File)
FILE - Brian Niccol, named the chairman and chief executive officer of Starbucks on Aug. 13, 2024, is shown during an interview on June 9, 2015, in New York. (AP Photo/Mark Lennihan, File)
NAIROBI, Kenya (AP) — Hundreds of workers at Kenya's main international airport demonstrated on Wednesday against a planned deal between the government and a foreign investor. Planes have remained grounded, with hundreds of passengers stranded at the airport.
The government has said that the build-and-operate agreement with India's Adani Group would see the Jomo Kenyatta International Airport renovated, and an additional runway and terminal constructed, in exchange for the group running the airport for 30 years.
Kenya Airport Workers Union, in announcing the strike, said that the deal would lead to job losses and “inferior terms and conditions of service” for those who will remain.
Kenya Airways on Wednesday announced there would be flight delays and possible cancellations because of the ongoing strike at the airport, which serves Nairobi.
Last week, airport workers had threatened to go on strike, but the plans were called off pending discussions with the government.
The spotting of unknown people moving around with airport officials taking notes and photographs raised concerns that the Indian firm officials were readying for the deal, local media outlets reported last week.
The High Court on Monday temporarily halted the implementation of the deal until a case filed by the Law Society and the Kenya Human Rights Commission is heard.
Stranded passengers wait for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
Kenya anti riot police stand guard as stranded passengers wait for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
Kenya airways flight attendants queue alongside stranded passengers waiting for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
Stranded passengers wait for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
A stranded passenger takes a nap as he wait for delayed flight out of JKIA airport in Nairobi, Kenya Wednesday, Sep. 11, 2024. Hundreds of workers at Kenya's main international airport demonstrated on Wednesday against a planned deal between the government and a foreign investor. Planes have remained grounded, with hundreds of passengers stranded at the airport. (AP Photo/Brian Inganga)
Stranded passengers wait for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
Stranded passengers wait for their delayed flights out of JKIA airport after flights were grounded following workers’ protesting a planned deal between the government and a foreign investor, in Nairobi, Kenya, Wednesday, Sept. 11, 2024. (AP Photo/Brian Inganga)
